Multiple Questions Answers

1. In large companies, the independent internal verification procedure is often assigned to
 management.
computer operators.
outside CPAs.
internal auditors.

2. Shandy Shutters has the following inventory information.
Nov.      1                              Inventory                            15 units @                           $8.00
                8                              Purchase                             60 units @                           $8.60
                17                           Purchase                             30 units @                           $8.40
                25                           Purchase                             45 units @                           $8.80
A physical count of merchandise inventory on November 30 reveals that there are 50 units on hand.
 Assume a periodic inventory system is used. Ending inventory under FIFO is
 $846.
$863.
$438.
$421.

3. Which of the following would not be reported on the balance sheet as a cash equivalent?
 Sixty-day certificate of deposit
Money market savings certificate
Six-month Treasury bill
Money market fund

4. If a petty cash fund is established in the amount of $250, and contains $150 in cash and $95 in receipts
for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
Petty Cash, $95.
Petty Cash, $100.
Cash, $100.
Cash, $95; Cash Over and Short, $5.